On 2 March 2023, the Finance and Expenditure Select Committee submitted a report to Parliament on the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Bill (No 2), introduced on 8 September 2022. The committee has proposed various amendments to the bill, with the most significant changes summarized below:

Information reporting with the platform economy

The committee suggests implementing OECD’s Model Rules for Reporting by Platform Operators for the sharing and gig economy, but deferring Part II of the Model Reporting Rules for Digital Platforms. They propose extending the reporting deadline to 7 February instead of 31 January, allowing Inland Revenue to determine the “excluded seller” threshold in New Zealand dollars (NZD), and penalizing platform operators only for serious or unreasonable offenses.

Changes regarding dual residence companies

The changes to the tax law include exempting treaty non-resident companies, who are resident under domestic law, from the non-resident withholding tax on dividends. It also allows imputation credits to be added to dividends paid to treaty non-residents retrospectively. Additionally, if a company unintentionally becomes a treaty non-resident, it will not trigger the corporate migration rules.

Goods and services tax (GST) in the platform economy

The committee has made changes to GST rules for electronic marketplaces, including allowing suppliers to remain responsible for paying GST without a written agreement with the marketplace operator if they sell services worth NZD 500,000 or more in any 12-month period. The requirement for large accommodation providers to have 2,000 nights per year on an online market to pay GST will only apply to one marketplace, and the first operator will be required to apply the flat-rate credit scheme to reduce compliance costs. Additionally, there will be an optional principal purpose test for assets worth NZD 10,000 or less, enabling GST-registered persons to claim back 100% of the GST input tax.